These numbers can be found on the company’s 8-K report. Fourth quarter of 2016 sales grew 19% to $388.1 million and diluted earnings per share increased 17% to $0.90. For the full year, sales grew 20% and diluted earnings per share grew 24% to $1.30. These are great numbers for the quarter and year because they signal the company had growth and still could continue to grow in the future.
Now, taking a look at the stock chart using the monthly time frame, we can see that price has not really moved outside of a range. This is good and bad as it can provide take profits and stop losses, but should not be relied upon on itself. It would be a good direction to go in researching the reasons why there might be a price range. Something simple such as price and demand could be the cause, but it could help your investing decision later on down the road. Overall, the chart appears healthy and nothing stands out as a red flag.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Five Below income statement, its balance sheet, and the statement of cash flows. Potential Five Below investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Five Below investors may use each financial statement separately, they are all related. The changes in Five Below's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Five Below's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Five Below
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Five Below performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Five Below shares is the value that is considered the true value of the share. If
the intrinsic value of Five is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Five Below. Please read more on our
fundamental analysis page.
How effective is Five Below in utilizing its assets?
Five Below reports assets on its Balance Sheet. It represents the amount of Five resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Five Below aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Other Specialty Retail space. To get a better handle on how balance sheet or income statements item affect Five volatility, please check the breakdown of all its
fundamentals.
Are Five Below Earnings Expected to grow?
The
future earnings power of Five Below involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Five Below factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Five Below
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Five
expected earnings.
Five Below Gross Profit
Five Below Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Five Below previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Five Below Gross Profit growth over the last 10 years. Please check Five Below's
gross profit and other
fundamental indicators for more details.
Another angle On Five Below
Risks
For a full list of risks, be sure to take a look at the most recent 10-K filing as that will have the risks as well as details about each risk. For now, here are a couple to keep in mind. First, being in the retail space leaves the company open to an economic downturn, which can still hurt the company even though they have a locked in price ceiling for their products. Secondly, competition in this market is heating up and they have to maintain brand image if they want to sustain their current path. If people get nervous, they’ll go elsewhere to purchase the products, even if it means spending a few extra bucks.
Conclusion
Overall, the company has potential and has shown it can grow, but only you can determine if it’s the right fit for your portfolio. Be sure to dig deep and compare them against the competition in the market. If you still have questions, reach out to an investing professional as they can help point you in the right direction.
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Nathan Young is a Senior Member of Macroaxis Editorial Board - US Equity Analysis. With years of experience in the financial sector, Nathan brings a diverse base of knowledge. Specifically, he has in-depth understanding of application of technical and fundamental analysis across different equity instruments. Utilizing SEC filings and technical indicators, Nathan provides a reputable analysis of companies trading in the United States.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Nathan Young do not own shares of Five Below. Please refer to our
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